Discounts, jobless bite Jack’s profit

Earnings down 15% vs. year-ago quarter

While the economy is starting to show signs of improvement, Jack in the Box is still expecting a 5 percent to 8 percent decrease in same-store sales at its company restaurants this fiscal year. In the coming year, though, it still expects to open 45 to 50 new Jack in the Boxes and 30 to 40 Qdoba outlets.

The chain also plans to continue pursuing its goal of expanding the proportion of franchise-owned restaurants, Hottovy said.

“It’s less of an operational and financial risk for the company and it requires a lot less capital on their part, as opposed to them opening up the restaurants themselves,” he said.